RECRON SYNTHETICS LTD. Vs. CCE

JUDGEMENT

(1.) THE appellant filed this appeal against imposition of penalty and payment of interest.

(2.) THE adjudicating authority dropped the proceedings as the appellants deposited the duty before issue of show cause notice on irregular availment of credit. Revenue filed appeal before the Commissioner (Appeals). By the impugned order, the Commissioner (Appeals) imposed penalty of Rs. 1,00,000/ - and recovery of interest.

(3.) LD . Advocate on behalf of the appellant submits that recovery of interest under Section 11AB was inserted on 11th May, 2001. In this case, credits have been reversed prior to 11.5.2001 and, Section 11AB of the Central Excise Act is not applicable. He further submits that the appellant availed irregular credit on bona fide manner and reversed the same before issue of the show cause notice and, penalty cannot be imposed. He relied upon the decision of the Punjab and Haryana High Court in the case of Commissioner of Central Excise v. Sigma Steel Tubes Ltd. Reported in and Commissioner of Central Excise, Ludhiana v. Steel Strips Ltd. reported in 2008(221) ELT 193 (P&H). He also cited several decisions of the Tribunal and the Hon'ble High Court.